The race for insurance companies to differentiate themselves in the industry is ongoing. As insurance companies disrupt the market and customers demand seamless, individualized experiences, insurance companies must change their way of serving their customers.
Insurance companies react differently to the challenge, but overall, adaptation is the key. Some enter the market with new products, some differentiate based on the level of data usage, while others focus on refining the overall customer experience. A good example of how the market is changing is Fennia, a Nordic insurer that has joined forces with Accenture and Salesforce to drive the first cloud transformation in the insurance industry in the region. In this case, the company has focused on its digital transformation towards the customer. By transforming their business, they create a competitive difference for themselves. Let̵7;s take a look at how their process sets a precedent for the industry.
The insurance industry needs a new approach
Traditionally, insurance companies have served customers with a well-known series of products, created over the years by customer data analysis and insight. However, customers’ needs are changing rapidly. Customers want insurance products that adapt to their changing needs, as well as the ability to add or change an insurance or claim digitally. While many insurance companies have access to the data that makes this possible, many do not have the digital infrastructure to adapt quickly and flexibly. A similar situation has fueled Fennia’s transformation. Although Fennia’s customer service and Net Promoter Score (NPS) are good, they want to drive customization for their customers further.
In our Future Fennia program, which extends over several years, we strive to achieve the best customer experience in the industry. We want our customers to be able to shape their own lives and experiment without worries. We have already polished our brand and developed our customer experience “We are now taking a big step in the development of our digital services. In order to offer the best customer experience in the industry in line with our vision, we first need to evaluate our entire business and the systems that support it,” says Antti Kuljukka, Fennia’s CEO and CEO.
The intention to serve the customer must be reflected in a broad scale. This starts with investing in a digital platform that can reflect a reworked insurance experience at each point of contact. As Fennia’s transformation illustrates, the new platform is designed not only to improve the customer experience and increase customer satisfaction, but to promote corporate flexibility, which enables the business to respond quickly to changing market and customer requirements.
The importance of technology
Following the rapid change of recent years, most insurance companies will consider a digital transformation. This supports refined customer focus and business acumen. But not all technology platforms are the same. The insurance companies that will emerge a bit above the rest will be the ones that invest in the technology that suits them best. In Fennia’s case, this was Salesforce, known for its customer relationship management systems. With its experience in implementing the platform, Accenture was able to collaborate with Fennia to establish a completely new business model and reshape the customer experience with improved digital opportunities, so that the customer is first through the entire insurance process. This will help expand to sales, complaint and policy management processes
By building a new, digitally supported customer experience, Fennia will be distinguished by an innovative and future-ready platform to meet and adapt to its customers’ needs. The new system will be built with the future in mind: the end result will be a system that can be developed easily and flexibly. Thanks to cloud technology, the system is constantly updated and can be used regardless of time and place.
“In practice, we are building a new insurance business alongside the current one, instead of just patching together what we already have. In this way, we will be able to build the future with our customers in focus, explains Patrik Serén, Fennia’s development manager.
To boldly transform is an opportunity for everyone
Insurers must go beyond data and understand how customers think if they are to provide at least an average experience. For an outstanding experience, they should know how to translate this data into relevant offers.
The cloud is an important tool for insurance companies – both new and established – as it can be scaled quickly and uses reliable technology as a basis for transformation. But as Accenture’s latest report Reimagining Insurance: The New Cloud Imperative shows, initiating or accelerating a Cloud Transition is not always easy. Fennia’s bold and visionary solution is an example of what is needed to implement a strategic, relevant cloud transformation: careful planning, the courage to facilitate an overall transformation of business and technology, adaptation to leadership and a customer-centric approach.
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Disclaimer: This content is provided for general information purposes only and is not intended to be used in consultation with our professional advisors.